End-User Spending on Public Cloud Services to Grow at 25% in 2020: Gartner

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Cloud application services (SaaS) remain the segment where end-user organizations in India will spend the most and will represent 42% of overall public cloud services end-user spending in 2020

According to a recent report by Gartner, end-user spending on public cloud services  in India is forecast to total $3.4 billion in 2020, a 25 per cent increase from 2019. This double-digit growth will position India as the No. 3 country for end-user spending on public cloud services.

The report highlighted that China and Indonesia will be the countries with the highest growth rates in end-user spending on public cloud services in 2020.

“Moving to the cloud and investing in public cloud services have become imperative to the success of digital business initiatives. It’s no longer a question of ‘why’, but a matter of ‘when’ organizations can shift to the cloud,” said Sid Nag, research vice president at Gartner.

He further added, “We have entered the cloud 2.0 era, where organizations are adopting a cloud-first or a cloud-only strategy.”

The report stated that cloud application services (SaaS) remain the segment where end-user organizations in India will spend the most and will represent 42% of overall public cloud services end-user spending in 2020. End-user spending on SaaS cloud application services in India will total $1.4 billion in 2020, an increase of more than 21 per cent year over year.

SaaS adoption

Nag further added, “SaaS adoption is associated with a lower cost of entry, which is one of the reasons for the high investment in this segment in India, which is a price-sensitive market. The next wave of changes that Indian CIOs foresee is consolidation in the cloud services market. The disinvestment in data centers by small and niche cloud service providers has increased the opportunities for hyperscale vendors, such as Amazon Web Services, Microsoft and Alibaba, to disrupt the cloud infrastructure services market rapidly.”

He also stated, “Multicloud and hybrid approaches are becoming inherent to cloud adoption. Organizations want to take full advantage of best-of-breed solutions, and are therefore working with one or more cloud service providers.”

The report mentioned that 90 per cent of global enterprise customers using cloud IaaS will take a multi-cloud approach, by 2021.

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